Oil has fallen over 4% this morning, hovering at the $60 level for West Texas Intermediate, Saudi Arabia is rumoured to be able to restart 70% of its lost output from the drone attacks. The Canadian rallied yesterday but to the same degree as oil and as such it hasn’t fallen back as much as oil today.
Canadian manufacturing sales fell more than expected in July. A 1.3 percent monthly decline followed a larger revised 1.4 percent decline in June, pulling down year-on-year growth into contraction from 0.1 percent to minus 1.9 percent. In volume terms, sales were down 1.6 percent on the month and unchanged year-on-year.
Markets have gone from focusing on the Middle Eat to waiting for the Federal Open Market Committee (FOMC) to announce its monetary policy decisions on Wednesday. As of writing, the Dow Jones Industrial Average and the S&P 500 were down 0.21% and 0.12%, respectively, while the Nasdaq Composite was virtually unchanged on the day. Expectations are for another rate cut, this would place the Bank of Canada in a further predicaments as it is still sticking with leaving rates unchanged.
Currently Close Range
USDCAD 1.3244 1.3240 1.3235-1.3299
EURCAD 1.4656 1.4656 1.4561-1.4682
GBPCAD 1.6555 1.6458 1.6417-1.6584